CHSR(SZ:000008)2014-07-31 16:00Financial Performance - The company achieved operating revenue of CNY 144.51 million, a decrease of 2.61% compared to the same period last year[21]. - The net profit attributable to shareholders was CNY 8.63 million, down 18.13% year-on-year[21]. - The net profit after deducting non-recurring gains and losses was CNY 7.23 million, a decline of 31.21% compared to the previous year[21]. - Basic earnings per share decreased by 14.29% to CNY 0.03[21]. - The company reported a net cash flow from operating activities of CNY 23.82 million, a decrease of 2.08% from the same period last year[21]. - The company reported a significant increase in investment income to $603,274.60, attributed to gains from redeemed fund investments[32]. - The company reported a total asset value of 661.47 million RMB as of December 31, 2013, based on the evaluation report by 德正信[80]. - The total operating profit for the period was CNY 33.43 million, a recovery from a loss of CNY 300,698.23 in the same period last year[117]. - The net profit for the current period was CNY 8,633,415.21, contributing to the increase in total equity[127]. - The retained earnings decreased by CNY 33,553,748.20, indicating a reduction in undistributed profits[127]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 632.12 million, an increase of 0.88% from the end of the previous year[21]. - The company's current assets decreased from RMB 208,793,926.86 to RMB 175,685,342.46, representing a decline of approximately 15.8%[107]. - The total liabilities decreased to CNY 48,301,784.18 from CNY 63,041,591.05, showing a reduction of 23.4%[112]. - The company's equity attributable to shareholders increased to CNY 572,217,774.85 from CNY 563,584,359.64, a growth of 1.1%[109]. - The total assets of the subsidiary Shenzhen Baolilai Investment Co., Ltd. were CNY 532,394,905.47, with a net profit of CNY 10,095,823.09 reported[47]. Investments and Acquisitions - The company plans to invest CNY 90 million in the online gaming business, with CNY 60 million already invested[29]. - The company made an external investment of $60 million in Chengdu Zhangyu Tianxia Technology Co., Ltd., acquiring a 10% stake in the mobile and web game development company[38]. - A total of CNY 6,000,000 was invested in Chengdu Zhangyu Tianxia Technology Co., Ltd. during the reporting period, with a planned total investment of CNY 9,000,000[49]. - The company acquired assets from Chengdu Zhangyu Tianxia Technology for a transaction price of 90 million CNY, with no impact on the company's financial status or operational results[61]. Corporate Governance and Compliance - The company has established a governance structure with a board of directors and specialized committees to oversee its operations and strategic direction[145]. - The semi-annual financial report was audited by 大华会计师事务所, and there was no change in the auditing firm compared to the 2013 annual report[82]. - The company has committed to avoid competition and reduce related party transactions, with no violations reported during the commitment period[80]. - The company did not experience any media scrutiny or bankruptcy restructuring events during the reporting period[59][60]. Financial Management - Operating costs decreased by 1.95% to $80.46 million, while sales expenses increased by 23.83% to $1.99 million due to higher advertising and marketing costs[31]. - The company's financial expenses decreased by 27.98% to $355,683.32, reflecting improved financial management[31]. - The company’s financial expenses showed a slight increase, with a net expense of CNY 466,727.03 compared to CNY 365,778.30 in the previous year[117]. Related Party Transactions - The company engaged in related party transactions, with hotel consumption and services totaling 77.37 million CNY, representing 0.54% of similar transactions[65]. - The total amount of daily related party transactions authorized by the shareholders' meeting was 8 million CNY for hotel consumption and 3.3 million CNY for leasing, with actual transactions not exceeding the authorized limits[66]. - There were no related party debt and credit transactions during the reporting period[69]. Operational Changes - The board of directors decided to abandon the plan to acquire and build a hotel in Shenzhen due to the challenging environment in the tourism and hotel industry[29]. - The company is actively pursuing a major asset restructuring plan as of July 2, 2014[29]. - The company did not have any significant contracts or other major transactions during the reporting period[79]. Accounting Policies - The financial statements are prepared in accordance with the Chinese Accounting Standards, ensuring compliance and transparency in reporting[147]. - The company recognizes financial assets at fair value upon acquisition, with subsequent changes in fair value affecting current profit or loss[163]. - The company assesses receivables for impairment based on objective evidence, with significant amounts over 2 million yuan subject to individual testing[173][175].